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State officials warn federal grant drawdowns are disrupting some capital projects
Summary
Officials told the committee that some federally funded capital projects had trouble drawing federal funds; OMB and agencies are compiling exposure estimates and contingency plans after at least one DHSS project temporarily halted work because a federal draw failed.
Committee members and OMB officials discussed disruptions to state capital projects caused by problems drawing federal grant funds and the resulting exposure to state budgets.
Director Maxwell reported committee members' calls about projects that were paused after federal drawdowns failed. He said one DHSS laboratory project could not draw down a federal ELC grant and that contractors were briefly removed from the job. Maxwell said the DHSS lab project was funded by the bond bill ($3,000,000 state allocation), an ELC federal grant (approximately $43,000,000 total), and ARPA cash on hand; OMB reported about…
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